Switzerland Population: 8,179,294

The Swiss Confederation was founded in 1291 as a defensive alliance among three cantons. In succeeding years, other localities joined the original three. The Swiss Confederation secured its independence from the Holy Roman Empire in 1499. A constitution of 1848, subsequently modified in 1874, replaced the confederation with a centralized federal government. Switzerland's sovereignty and neutrality have long been honored by the major European powers, and the country was not involved in either of the two world wars. The political and economic integration of Europe over the past half century, as well as Switzerland's role in many UN and international organizations, has strengthened Switzerland's ties with its neighbors. However, the country did not officially become a UN member until 2002. Switzerland remains active in many UN and international organizations but retains a strong commitment to neutrality.

German (official) 63.5%, French (official) 22.5%, Italian (official) 8.1%, English 4.4%, Portuguese 3.4%, Albanian 3.1%, Serbo-Croatian 2.5%, Spanish 2.2%, Romansch (official) 0.5%, other 6.6% note: German, French, Italian, and Romansch are all national and official languages; totals more than 100% because some respondents indicated more than one main language (2013 est.)

conventional long form: Swiss Confederation conventional short form: Switzerland local long form: Schweizerische Eidgenossenschaft (German); Confederation Suisse (French); Confederazione Svizzera (Italian); Confederaziun Svizra (Romansh) local short form: Schweiz (German); Suisse (French); Svizzera (Italian); Svizra (Romansh) etymology: name derives from the canton of Schwyz, one of the founding cantons of the Old Swiss Confederacy that formed in the 14th century

note: 6 of the cantons - Appenzell Ausserrhoden, Appenzell Innerrhoden, Basel-Landschaft, Basel-Stadt, Nidwalden, Obwalden - are referred to as half cantons because they elect only one member to the Council of States and, in popular referendums where a majority of popular votes and a majority of cantonal votes are required, these six cantons only have a half vote

Independence:

1 August 1291 (founding of the Swiss Confederation)

National holiday:

Founding of the Swiss Confederation in 1291; note - since 1 August 1891 celebrated as Swiss National Day

Constitution:

history: previous 1848, 1874; latest adopted by referendum 18 April 1999, effective 1 January 2000 amendments: proposed by the two houses of the Federal Assembly or by petition of at least one million voters (called the "federal popular initiative"); passage of proposals requires majority vote in a referendum; following drafting of an amendment by the Assembly, its passage requires approval by majority vote in a referendum and approval by the majority of cantons; amended many times, last in 2016 (2016)

Legal system:

civil law system; judicial review of legislative acts, except for federal decrees of a general obligatory character

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President of the Swiss Confederation Doris LEUTHARD (since 1 January 2017); Vice President Alain BERSET (since 1 January 2017; note - the Federal Council, which is comprised of 7 federal councillors, constitutes the federal government of Switzerland; council members rotate in a 1-year term as federal president (chief of state and head of government)

head of government: President of the Swiss Confederation Doris LEUTHARD (since 1 January 2017); Vice President Alain BERSET (since 1 January 2017)

cabinet: Federal Council or Bundesrat (in German), Conseil Federal (in French), Consiglio Federale (in Italian) indirectly elected usually from among its members by the Federal Assembly for a 4-year term elections/appointments: president and vice president indirectly elected by the Federal Assembly from among members of the Federal Council for a 1-year, non-consecutive term; election last held on 7 December 2016 (next to be held in early December 2017)

description: bicameral Federal Assembly or Bundesversammlung - in German, Assemblee Federale - in French, Assemblea Federale - in Italian consists of the Council of States or Staenderat - in German, Conseil des Etats - in French, Consiglio degli Stati - in Italian (46 seats; members in multi-seat constituencies representing cantons and single-seat constituencies representing half cantons directly elected by simple majority vote; members serve 4-year terms) and the National Council or Nationalrat - in German, Conseil National - in French, Consiglio Nazionale - in Italian (200 seats; 195 members in cantons directly elected by proportional representation vote and 5 in half cantons directly elected by simple majority vote; members serve 4-year terms)

elections: Council of States - last held in most cantons on 18 October 2015 (each canton determines when the next election will be held); National Council - last held on 18 October 2015 (next to be held in October 2019)

highest court(s): Federal Supreme Court (consists of 38 judges and 31 substitutes and organized into 5 sections) judge selection and term of office: judges elected by the Federal Assembly for 6-year terms; note - judges are affiliated with political parties and are elected according to linguistic and regional criteria in approximate proportion to the level of party representation in the Federal Assembly

note: unofficially adopted 1961, officially 1981; the anthem has been popular in a number of Swiss cantons since its composition (in German) in 1841; translated into the other three official languages of the country (French, Italian, and Romansch), it is official in each of those languages

Switzerland, a country that espouses neutrality, is a prosperous and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. Its economic and political stability, transparent legal system, exceptional infrastructure, efficient capital markets, and low corporate tax rates also make Switzerland one of the world's most competitive economies. The Swiss have brought their economic practices largely into conformity with the EU's to enhance their international competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. The fate of the Swiss economy is tightly linked to that of its neighbors in the euro zone, which purchases half of Swiss exports. The global financial crisis of 2008 and resulting economic downturn in 2009 stalled demand for Swiss exports and put Switzerland into a recession. During this period, the Swiss National Bank (SNB) implemented a zero-interest rate policy to boost the economy, as well as to prevent appreciation of the franc, and Switzerland's economy began to recover in 2010. The sovereign debt crises unfolding in neighboring euro-zone countries, however, coupled with ongoing economic instability in Russia and other eastern European economies continue to pose a significant risk to the Swiss economy, driving up demand for the Swiss franc by investors seeking a safe-haven currency. In January 2015, the SNB abandoned the Swiss franc’s peg to the euro, roiling global currency markets and making active SNB intervention a necessary hallmark of present-day Swiss monetary policy. The independent SNB has upheld its zero interest rate policy and conducted major market interventions to prevent further appreciation of the Swiss franc, but parliamentarians have urged it to do more to weaken the currency. The franc's strength has made Swiss exports less competitive and weakened the country's growth outlook; GDP growth fell below 2% per year from 2011-15. In recent years, Switzerland has responded to increasing pressure from neighboring countries and trading partners to reform its banking secrecy laws, by agreeing to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The Swiss government has also renegotiated its double taxation agreements with numerous countries, including the US, to incorporate OECD standards, and is openly considering the possibility of imposing taxes on bank deposits held by foreigners.

note: general government gross debt; gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future; includes debt liabilities in the form of Special Drawing Ri

1,292 km (there are 1,227 km of waterways on lakes and rivers for public transport and 65 km on the Rhine River between Basel-Rheinfelden and Schaffhausen-Bodensee for commercial goods transport) (2010)

19-26 years of age for male compulsory military service; 18 years of age for voluntary male and female military service; every Swiss male has to serve at least 260 days in the armed forces; conscripts receive 18 weeks of mandatory training, followed by seven 3-week intermittent recalls for training during the next 10 years (2012)

a major international financial center vulnerable to the layering and integration stages of money laundering; despite significant legislation and reporting requirements, secrecy rules persist and nonresidents are permitted to conduct business through offshore entities and various intermediaries; transit country for and consumer of South American cocaine, Southwest Asian heroin, and Western European synthetics; domestic cannabis cultivation and limited ecstasy production